Equity capital raising in Singapore slowed year-on-year in
a volatile third quarter, but real estate investment trusts
helped maintain year-to-date volumes at a five-year
high.3Q ECM (equity capital market) activities were muted
primarily due to the uncertainties in the equity market.
Proceeds raised from priced stock sales, including
convertible deals, in Singapore fell 20% y-o-y to
US$4.4bn in the three months to September, preliminary
data compiled by Thomson Reuters showed. Year-to-date,
equity deals have raised US$14.9 bn in Singapore. Real
estate investment trusts (Reits) have dominated Singapore
equity capital markets so far this year. Reits led the way
during the quarter, with Overseas Union Enterprise raising
US$521m from the spinning off of the OUE Hospitality
Trust and Singapore Press Holdings drawing US$440m for
its SPH Reit. For the nine months ended September, equity
deals from the real estate sector accounted for 39%, or
US$5.8 bn, of the total. On the new listings front, 86%,
or US$2.9 bn, of total year-to-date IPO proceeds were
raised by real estate plays.
EMS Energy has secured from its major shareholder,
Koastal Industries, a contract worth US$36m to build a
Derrick Equipment Set (DES), complete with full drilling
equipment, for an offshore tender assisted drilling rig,
commonly known as tender rig, and expects to secure
two more DES of similar value over the next few months.
EMS will deliver the first DES for the tender rig, over 18
months to Koastal for a China state-owned Shipyard. The
project is the largest that EES has secured to date. With
this first DES project secured, the Group’s order book has
increased to about S$67.8m from S$18.4m as announced
in August 2013.
Geo Energy Resources has entered into a mining services
contract and a coal mining cooperation agreement with
PT Parisma Jaya Abadi (PJA). PJA holds mining business
permits for an area of 5,000 hectares located in East
Kalimantan Province.
ISDN Holdings has acquired 80% stakes in two more
Indonesian hydropower-related businesses for a total of
US$1.9m. The acquisitions, funded by the company's
reserves, are the latest in a string of purchases made by ISDN
to expand in Indonesia's hydropower production sector.
US Indices Last Close Pts Chg % Chg
Dow Jones 15,334.6 (66.
(0.4)
S&P 1,697.4 (4.4) (0.3)
NASDAQ 3,768.3 3.0 0.1
Regional Indices
ST Index 3,211.8 (2.5) (0.1)
ST Small Cap 580.1 0.0 0.0
Hang Seng 23,179.0 (192.5) (0.
HSCEI 10,599.2 (118.6) (1.1)
HSCCI 4,434.9 (49.6) (1.1)
KLCI 1,792.5 (3.9) (0.2)
SET 1,417.8 (18.9) (1.3)
JCI 4,460.4 (102.4) (2.2)
PCOMP 6,461.4 (16.6) (0.3)
KOSPI 2,005.0 (2.1) (0.1)
TWSE 8,299.1 6.3 0.1
Nikkei 14,732.6 (9.
(0.1)
STI
Total Market cap (US$bn) 592
Total Daily Vol (m shrs) 5,185
12m ST Index High 3,454
12m ST Index Low 2,946
Source: Bloomberg Finance L.P
Stock Picks – Large Cap
Rec’n Price ($)
24 Sep
Target Price
($)
ST Engineering Buy 4.220 4.80
ComfortDelgro Buy 1.940 2.19
OCBC Bank Buy 10.390 12.40
Singapore Airlines Buy 10.420 11.40
Suntec REIT Buy 1.680 1.78
Stock Picks – Small /Mid Cap
Rec’n Price ($)
24 Sep
Target Price
($)
Ezion Holdings Buy 2.370 3.20
Goodpack Buy 1.710 2.00
CSE Global Buy 0.905 1.07
Mapletree Commercial Trust Buy 1.200 1.35
CDL Hospitality Trust Buy 1.630 1.80
Source: Bloomberg Finance L.P, DBS Vickers
Singapore
Wired Daily
Page 2
Avic International Maritime is riding on the wave of China's
shipyard boom, via the strategic acquisition last year of
Deltamarin, which is known for its strengths in innovation
and design capabilities. Two factors have led Avic's rise in
profile among Chinese shipyards: Firstly, it has been able to
take advantage of the lack of in-house structured design
capabilities among Chinese yards to offer customised designs
for individual customers. Secondly, the Avic group, the
parent company of Avic International Maritime, is a Fortune
500, state-owned enterprise in China. This not only entitles it
to strong support from Chinese financial institutions, it also
means it can tap into its network to build its business.
Ley Choon Group has won four contracts amounting to
about $30.6m, raising its order book to $233.4m. Two of
the projects came from PowerGas, the third from JTC and
the last one is a subcontracting contract for supply and
installation of power cables. The group will continue to
leverage growth opportunities afforded by the increase in
public infrastructure projects to expand its business.
CCFH Ltd is placing out 124m new shares at an issue price of
S$0.0333 per share, amounting to S$4.1m. The issue price
represents a discount of approximately 9.98% to the last
volume-weighted average price. The proceeds will be used
for the general and corporate working capital requirements
of the Group.
US stocks fell as the debate among lawmakers continued.
Democrats offered a new proposal to fund the government
through Nov15, which complicates efforts to avoid a
government shutdown in a week. The 10-year treasury yield
dipped to a 6-wk low of 2.66% as investors bet that the FED
will not cut back on QE next month.
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